Tax & Legal Update
Partial termination notices for employees performing several types of work
In a case before the Supreme Court of the Czech Republic, an employee did not meet the legal pre-requisites for performing direct pedagogical activities, and was therefore given a notice of termination by the employer. However, other types of work…
Transfer of garage parking place without pre-emptive right again?
The government approved and submitted to the parliament another amendment to the Civil Code, which prescribes, among other things, an exception from the pre-emptive right to a co-owner’s share in real property in certain cases of residential co…
What expenses are reasonably incurred when mortgage loans are repaid prematurely?
In early March, the Czech National Bank published its opinion on expenses that can be regarded as reasonably incurred in connection with the early repayment of a consumer loan for residential purposes. What are the CNB’s views on this? Shall we…
Financial market about to change
In mid-February, an amendment that may bring significant changes to several financial market segments was submitted to the Chamber of Deputies. What are the amendment’s major points? What should entities operating in the financial market prepare…
Czech reporting of cross-border transactions
The Ministry of Finance has submitted a draft amendment to tax legislation for 2020 for comments. The amendment includes, among other things, the implementation of DAC 6 and the introduction of reporting duties relating to selected cross-border…
Last call to participate in Employment Operational Programme: support for employee…
On 15 March 2019, the Ministry of Labour and Social Affairs announced a new call to participate in a programme supporting the professional education of employees relating to IT, languages, soft skills, and professional skills. This call is likely to…
Changes to income tax after 2019 amendment
The long-awaited tax package entered into effect on 1 April. Legal entities will primarily have to cope with changes to withholding tax, borrowing costs and cross-border transactions; individuals, on the other hand, will mostly be affected by…
2019 amendment to VAT Act: summary of major changes, vol. 2
Over the last year, in our Tax and Legal Update, we have discussed the changes to VAT that are part of the 2019 tax package many times. The final version of the amendment is on the table now, giving us the chance to summarise the major changes and…
Punishment in tax
In a recent judgement, the Supreme Administrative Court confirmed that a penalty for late filing of a tax return is by its nature a penal sanction. Therefore, when imposing the penalty, a later legal regulation shall be applied if more advantageous…
Ground-breaking judgement: vacation compensation to be included in R&D allowance
The Regional Court in Hradec Králové issued judgement No. 31 Af 23/2016-76, dealing with tax allowances for research and development (R&D allowance). The judgment is truly ground-breaking, as it rejects the standpoint so far taken by the tax…
Retaining undisputed portion of excess deduction held unconstitutional
Last week, the Constitutional Court issued a judgement reversing the Supreme Administrative Court’s negative standpoint to a partial refund of an undisputable portion of excess deductions. According to the Constitutional Court, retaining the…